Videocon Group Acquires Prime Ahmedabad Land for Commercial Development
Consumer durables giant Videocon Group has purchased Lotus Society, a housing society located in Ahmedabad's prime business district off Ashram Road, for over Rs 50,000 per square yard. The deal, valued at Rs 30 crore, involves a 6,000 square yard property situated along the Sabarmati river, where the ambitious Rs 2,000-crore riverfront development project is underway. Videocon intends to construct a commercial complex and a five-star hotel on this strategically acquired land.
Competition and Acquisition Process
The acquisition of Lotus Society attracted interest from multiple developers. Initially, a local Ahmedabad developer attempted to acquire the property, followed by several other local developers who entered negotiations. Ultimately, Videocon secured the deal approximately one month ago with assistance from local builders. Industry sources indicate that Videocon has commenced part payments to the flat owners, who have entered into a Memorandum of Understanding (MoU) with the company, agreeing to vacate their flats within a specified timeframe.
Videocon's Strategic Retail Expansion
Videocon Group's land acquisition aligns with its ambitious retail strategy. The company is venturing into grocery and lifestyle retailing using a cash-and-carry format across India. This acquisition demonstrates Videocon's forward-thinking approach, capitalizing on the Sabarmati riverfront development project. The group has enlisted the expertise of advisors such as KSA Technopark, Earnst & Young, and Price WaterHouseCoopers to assist in the execution of its retail endeavor.
Leadership and Store Rollout Plans
Subir Ghosh, former CEO of Essar retail, has been appointed to spearhead Videocon's Planet M business. The company is currently actively seeking suitable land parcels in Ahmedabad, Kolkata, Aurangabad, and Ahmednagar, with intentions to set up 40 stores nationwide. Each store is projected to occupy between 75,000 and 100,000 square feet. Videocon Group has allocated over Rs 5,000 crore for the establishment of its retail business over the next five years.